Daily Current Affairs : 3-August-2024
In an attempt to address food grain shortages in certain states, the Indian government recently announced a considerable move. Effective from August 1, grain-deficient states can now directly purchase rice from the Food Corporation of India (FCI) under the Open Market Sale Scheme (OMSS Domestic) for ₹2,800 per quintal. This will be done without the need for participation in e-auctions. The goal of this policy is to reduce surplus rice stocks before the new procurement season begins.
Key Objectives of the Policy
- Direct Purchase Option: Grain-deficient states can now buy rice directly from FCI at a fixed price of ₹2,800 per quintal.
- Surplus Reduction: This move will help the government reduce its surplus stock of rice before the new procurement season starts.
- Focus on Nutrition: This initiative aligns with broader efforts to enhance food security and reduce malnutrition in vulnerable regions.
About the Open Market Sale Scheme (OMSS)
The Open Market Sale Scheme (OMSS) is a government initiative through which the Food Corporation of India (FCI) sells surplus wheat and rice stocks in the open market. The goal is to regulate the supply and price of food grains in the market, ensuring they are available to those in need at affordable prices.
- E-Auctions: Traditionally, FCI sells surplus grains through e-auctions, which are conducted weekly on the National Commodity and Derivatives Exchange (NCDEX) platform. These auctions allow buyers to bid for stocks of wheat and rice.
- Regulation of Prices: By selling surplus stocks in this way, the government can help regulate wheat and rice prices, preventing inflation and ensuring that grains reach consumers at reasonable rates.
Achieving 100% Fortified Rice Distribution
In addition to the OMSS, the government has made significant progress in addressing malnutrition in the country. The government has achieved 100% coverage of fortified rice distribution. This initiative is aimed at combating anaemia and other nutritional deficiencies, especially among vulnerable populations. By fortifying rice with essential micronutrients like iron, folic acid, and vitamin B12, the government hopes to improve the nutritional intake of millions of people across India.
Important Points:
- Direct Rice Purchase: Grain-deficient states can now buy rice directly from the Food Corporation of India (FCI) at ₹2,800 per quintal, effective from August 1.
- No E-Auction Needed: States can bypass e-auctions and directly purchase rice under the Open Market Sale Scheme (OMSS Domestic).
- Surplus Reduction: The move aims to reduce surplus rice stocks before the new procurement season.
- Focus on Nutrition: The policy aligns with efforts to improve food security and reduce malnutrition in vulnerable regions.
- About OMSS: OMSS allows FCI to sell surplus wheat and rice in the open market to regulate supply and price.
- E-Auctions for Grain Sales: Traditionally, surplus rice and wheat are sold through weekly e-auctions on the NCDEX platform.
- Regulation of Prices: Selling surplus grains through OMSS helps control prices and ensures affordability for consumers.
- Fortified Rice Distribution: The government has achieved 100% distribution of fortified rice to combat anaemia and nutritional deficiencies.
- Micronutrient Fortification: Fortified rice is enriched with iron, folic acid, and vitamin B12 to improve public health.
Why In News
The government recently announced that, effective August 1, grain-deficient states can directly purchase rice from the Food Corporation of India (FCI) under the Open Market Sale Scheme (Domestic) (OMSS [D]) for ₹2,800 per quintal, bypassing the usual e-auction process. This move is aimed at simplifying the procurement process and ensuring a steady supply of rice to states facing shortages.
MCQs about New Policy to Address Rice Shortages and Enhance Nutrition
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What is the new policy announced by the government regarding rice procurement?
A. Grain-deficient states must participate in e-auctions to buy rice
B. Grain-deficient states can buy rice from FCI directly at ₹2,800 per quintal
C. Rice will be sold only to exporters
D. Rice procurement will be restricted to a few states
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What is the main objective of the government’s new rice procurement policy?
A. To increase rice exports
B. To reduce surplus stocks of rice before the new procurement season
C. To increase rice prices
D. To stop rice distribution through e-auctions
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How does the Open Market Sale Scheme (OMSS) regulate the supply and price of food grains?
A. By allowing direct sales of rice to consumers
B. By selling surplus wheat and rice stocks in the open market through e-auctions
C. By restricting the sale of rice to government agencies only
D. By increasing the production of food grains
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What is the government’s initiative to improve nutrition in the country?
A. Distribution of free rice
B. Fortified rice distribution to combat anaemia and nutritional deficiencies
C. Subsidizing rice prices for exporters
D. Banning non-fortified rice
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